Boat Insurance 101

Whether you own a sailboat, motorboat, or dinghy, you know the thrill and tranquility that comes with being out on the water. From cruising around the bay at your cottage, fishing, or even sailing the open seas, a boat can provide plenty of possibilities for adventure and relaxation. But like any valuable asset, it's important to protect your investment with the insurance coverage that's right for you. In the following article, we'll walk you through the basics of boat insurance - and some safety tips too – to help you set sail with confidence.

Insurance protection for your boat is similar to car insurance, with boat insurance typically providing coverage for:

• Your boat, including loss or damage to the boat itself from things like theft, collisions, fires, or storms.
• Your personal belongings, including lifejackets and other stuff you use with your boat.
• Liability claims to protect you financially if you injure someone or damage another person's property while using your boat.
• Towing and assistance should you need towing or emergency assistance services while you're on the water.

You may also want to consider other types of protection too, including insurance for your boat trailer or other accessories. Contact a TD Insurance Advisor to find the right coverage for you.

You're not legally required to have insurance on your boat in Ontario, or any other Canadian province. However, you may need proof of insurance for your boat to secure financing. Of course, that's not the only reason why you should consider boat insurance. Insuring your boat offers financial protection in the event your boat is damaged or stolen, or if you injure someone or damage their property in a boating accident. With the right insurance, you can confidently enjoy your time on the water knowing that you've got the coverage you need for you, your boat, and your passengers.

The cost of boat insurance in Canada can vary depending on a number of different factors, which may include the size of your boat, its value, and where it'll be stored. The coverage you choose, and your deductible amount (how much you're required to pay following a covered claim before your insurance kicks in) can also impact your boat insurance premium. Shopping for boat insurance? Contact a TD Insurance Advisor to get a boat insurance quote.

Some home insurance policies may provide coverage for small boats and personal watercraft. But whether your boat is covered under your home insurance policy ultimately depends on the characteristics of your boat and your insurance details. Reach out to your insurance provider to ensure you've got adequate coverage for your boat.

Boat safety is essential to minimize risk and enjoy your time on the water. Before you pull away from the dock, it's important to consider the boat safety tips below.

• Get your Pleasure Craft Operator Card (PCOC): If you operate a power-driven boat, the government requires proof of competency in most provinces† - like a PCOC. Get your card by taking a boating safety course in-person or online, and passing the test at the end of the course.
• Check the weather: Avoid boating in severe weather conditions by checking the forecast before you leave and being aware of sudden changes. Things like darkening clouds, intense winds, or a drop in temperature could signal an approaching storm. Get timely alerts directly on your phone by signing up for Severe Weather and Safety Alerts through the TD Insurance app. 
• Wear a life jacket: Ensure all passengers wear properly fitted life jackets or personal floatation devices whenever you're using your boat.
• Maintain your boat: Regularly check fuel levels, instrument lights, engines, or sails to confirm they're in good working order. In case of an emergency, you're legally required to keep your boat stocked with mandatory safety equipment, including a flashlight, navigation lights, sound signaling device, and a fire extinguisher. 
• Avoid alcohol: Like drinking and driving, drinking and boating is illegal and can be very dangerous, increasing your risk of an accident or injury.

Boat insurance can provide protection against a range of risks and liabilities while you're out on the water (and while your boat is docked, too).  Contact a TD Insurance Advisor to get a boat insurance quote and find the right coverage for you.

^† https://tc.canada.ca/en/marine-transportation/marine-safety/operator-card-pcoc-faq